Real Estate Valuation and Advisory Services

Our experience and analytical insight allows us to fulfill our clients’ tax and financial reporting valuation needs. We go beyond mere documentation to provide our clients with the confidence to meet their growing financial reporting responsibilities. By teaming with our Corporate Valuation Advisory Services colleagues and our Accounting and Financial Reporting team, our breadth of resources has enabled us to become a leader in valuing tangible assets and right-of-use assets and liabilities. Our commitment to understanding changes in regulations and best practices—and our ability to set the standards for uncharted territory—allows our clients to remain focused on operating their businesses.

• Financial Reporting
  • Business Combination (ASC 805) 
  • Lease Accounting (ASC 842) 
  • Impairment Testing (ASC 350 and 360) 
  • Fair Value Measurement (ASC 820)
  • Fresh-Start Accounting (ASC 852)
• USPAP Appraisal

Contacts

Our experience and analytical insight allows us to fulfill our clients’ tax reporting valuation needs. Our breadth of resources has enabled us to become a leader in valuing tangible assets and intangible assets and liabilities, which allows our clients to remain focused on operating their businesses.

• Value of assets for purchase price allocation, including inventory, real estate, machinery and equipment, intangible assets, and goodwill (IRC Section 1060 and 338(h)(10))
• Value associated with transfer pricing of assets and intercompany licensing of assets for cross-border transactions between affiliated entities (IRC Section 482)
• Value of assets for purposes of allocating corporate interest expense across international jurisdictions (IRC Section 861)
• Value of assets to support like-kind exchange transactions (IRC Section 1031)
• Value of assets and entities for a variety of state tax purposes
• Foreign Interest in Real Property Tax Act (FIRPTA)

Contacts

Our team of licensed CPAs and appraisers joins forces with the industry experts in our Transaction Advisory Services and Real Estate, Lodging & Leisure practices to bring real-time deal insights to our clients throughout the deal process. Together we provide an integrated, market-driven approach to helping clients realize value and manage risk throughout the real estate transaction life cycle.

• Strategic Planning—establishing a clear acquisition framework
• Market and Deal Identification—performing market analysis and commercial due diligence, and identifying potential deals
• Pre-Deal Analysis—completing financial due diligence; asset- and entity-level analysis and valuation; and pro formas
• Execution—providing support with the purchase agreement language, working capital analysis, and closing statement prorations
• Post-Deal Close—performing financial and tax valuations; analyzing acquired assets for potential cost savings; and providing guidance/diligence on realization and exit opportunities

Contacts

Our REVS team has licensed CPAs, appraisers, and other credentialed individuals who provide our clients with in-depth financial and real estate market expertise. Despite real estate generally being one of the top three balance sheet and income statement line items, many corporate occupiers/users of real estate consider it a sunk cost. REVS can help clients unlock hidden value in their assets and save costs.

• Portfolio assessment to identify potential cost savings and monetization opportunities
• Market rent assessments
• Rent reduction strategies
• Lease audits
• Property tax reviews (teaming with our Disputes practice)
• Target operating model assessments
• Monetization recommendations (e.g., sale lease-backs, disposition of non-core locations)

Contacts

Whether our clients are looking to fulfill their fiduciary duties, mitigate risk, or determine corporate value, we are there throughout the transaction process to provide objective advice based on rigorous analysis. We team with the experienced professionals in our Transaction Opinions practice to work on behalf of boards of directors, investors, trustees, and other corporate leaders to advise and issue opinions on a wide range of transactions.

• Fairness Opinions
• Solvency Opinions
• Estate and Gift Tax Valuation
• Fund Opinions

Contact

We work with our Fund Opinions practice to assist financial sponsors, including real estate funds, private equity funds, hedge funds, and credit funds, through a range of affiliate transactions. As regulators and investors increase scrutiny of private investment funds, sponsors must be aware of actual or perceived conflicts of interest in affiliate transactions. Fund affiliate transactions often address end-of-life fund issues or involve combinations of assets across funds. Affiliate transactions that may be actual, or may be perceived as, conflicts of interest include:

• Property and Asset Manager Internalization Transactions
• Cross-Trades or Fund Transfers
• Fund Seeding
• Fund Recapitalization
• Principal Transactions
• Contractual Arrangements

Contact

Houlihan Lokey has extensive experience advising boards of directors and special committees as they navigate a range of strategic situations and challenges inherent to REITs and owners of real estate. We have a long-standing history of delivering independent advice and financial opinions in a variety of complex situations.

• Affiliate Merger Transactions
• Management Company Internalization Transactions
• External Management Agreement Negotiations
• Related-Party Financings

Contact

Houlihan Lokey’s Portfolio Valuation and Fund Advisory Services practice is a leading advisor to many of the world’s largest asset managers and REITs, who rely on our strong reputation with regulators, auditors, and investors and our independent voice. We rapidly mobilize the right team for the job, drawing on our expertise working with complex capital structures as well as a wide variety of property types and geographies. We have real-world transaction experience and market knowledge across the capital stack that informs our valuation procedures.

• Fair Valuation for Financial Reporting
  • Asset/Enterprise Valuation
  • Senior Debt
  • Mezzanine Debt
  • Controlling/Minority Private Equity
  • Construction Loans
  • Bridge Loans
• Fund Opinions
• Portfolio Acquisition and Divestiture Services

Contacts

As members of a leading international investment banking and financial advisory firm, our financial experts bring unique value to counsel and their clients when advising on valuation matters related to dispute assessments, mediation, arbitration, and litigation. Our real estate professionals team with our Dispute Resolution Consulting professionals to provide case assessment, strategy design, complex financial modeling, damage theory formulation, settlement assistance, and expert witness testimony in a variety of legal matters. Our professionals help our clients prepare in-depth analyses that are credible and defensible, identify areas of potential dispute, create resolution plans, and provide support throughout the legal process.

• Real Estate Damages—environmental, condemnation, construction, contract, financial, or other detrimental event that may lead to damage claim or loss in property value
• Property Tax Appeals
• Estate and Gift Tax Challenges
• Expert Witness and Litigation Support